The Governor of the Reserve Bank of New Zealand, Adrian Orr, appeared before the New Zealand Parliament, before the
Parliament’s Finance and Expenditure Select Committee on Thursday morning (05 May 2022).
Despite being well ahead of many other central banks in raising rates, Orr was asked if the Bank is slow to react to inflation risks.
- Said the RBNZ was ‘brave’ to start tightening monetary policy ahead of many of its peers
Being too out of step with others in terms of monetary policy carries risks.
It’s business as usual in monetary policy.
We do not see stagflation as a major risk.
We will reduce economy by increasing OCR.
NZD/USD jumped on the FOMC and Powell presser and hasn’t done much since: